Chartered Accountants Australia and New Zealand (CA ANZ), CPA Australia and the Institute of Public Accountants (IPA) (“the Joint Accounting Bodies”) have jointly issued guidance for self-managed superannuation fund (SMSF) auditors on SMSFs using investment management service organisations. In the form of frequently asked questions (FAQs), the guidance aims to provide some simple, concise signposting by bringing together relevant paragraphs of the applicable auditing and assurance standards, and guidance statements.

It is in response to questions that members have asked the Joint Accounting Bodies in relation to auditing SMSF financial reports where the SMSF outsources the management of its investments to a service organisation. The guide emphasises that it is possible to obtain sufficient appropriate audit evidence, but there is no one-size-fits-all approach, and the outcome is not binary. As with all audits, the nature, timing and extent of audit procedures are based on risk and the auditor’s professional judgement.